Times of Oman - January 24, 2016

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FROM THE WORDS OF HIS MAJESTY THE SULTAN

To the students of Sultan Qaboos University, 2000

‘His Majesty’s Wisdom’ You, or some of you, may not remember that time when there were schools in tents. When we first set up the Ministry of Education we issued directives that every effort must be made to build schools as quickly as possible using all available facilities. Schools were indeed built with the greatest possible speed - taking into consideration the circumstances of that time - and that marked the start of the development of primary, then preparatory, then secondary education. We aimed to establish an educational system as fast as we could, because we knew that Knowledge is Light and light is the opposite of darkness.

SUNDAY, January 24, 2016 / 14 Rabi Al Thani 1437 AH

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‘Budget airline won’t affect Oman Air plans’

PLUMMETING MARKET

Oman Air will share its resources with the low-cost

Share market losses to induce slowdown A. E. JAMES

businesseditor@timesofoman.com MUSCAT: A slowdown in economic activity in several sectors is expected with investors on the local bourse losing hundreds of millions of rials and the stock market plummeting to a sevenyear low. The investor community in general will spend less since there is a substantial (notional) loss in their portfolio investments or financial assets. “These are the times when people generally avoid luxury consumption due to the fact that they are not able to generate income from short-term eq-

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uity market investments,” said Kanaga Sundar, head of Research at Gulf Baader Capital Markets. Liquidity crunch Although the actual loss will be felt when an investor sells his shares, the investor community in general faces a liquidity crunch, since they are unable to divest their equity shares. Local and foreign investors on the Muscat Securities Market (notionally) lost OMR720 million in share value, when the market plunged by 539.22 points or almost 10 per cent since the beginning of the year (14 trading sessions) to close at 4,867 points on Thursday. >A6

carrier leading to their optimum utilisation in the sector expected to grow at 40%, said Gregorowitsch

REJIMON K

reji@timesofoman.com MUSCAT: Entry of low-cost airline into Oman’s aviation market will not impede Oman Air’s ambitions, a top official from the airline has said. “Oman Air has grown over the last year thanks to the competition. The new entrant will not stop us in our ambitions,” Paul Gregorowitsch, Oman Air’s chief executive officer (CEO), said in

JOINT EFFORT: Oman Air will work together with the new

low-cost airline and share its infrastructure for better utilisation.

an exclusive email interview with the Times of Oman. “We will continue on our journey to become the best and await the initiatives of the new entrants with confidence,” Oman Air’s CEO added. On Wednesday, the Muscat National Development and Investment Company, Asas, was awarded an air services operator licence by the Public Authority for Civil Aviation to establish Oman’s first low-cost carrier. The new venture is expected

to fuel economic growth underpinned by strong air traffic demand, which is expected to grow by 40 per cent by 2019. While responding to a question on what steps would Oman Air initiate to avoid a price war, Gregorowitsch said that as the initiative of the new entrant is supported by state investment funds, Oman Air will work together and share resources, such as the new simulator building, crew reporting building, emergency response facilities and integrated opera-

tional control centre. “We see it as an opportunity to grow the market and to provide extra guests to our growing international network,” he said, adding that Oman Air is currently waiting to get more information about the low-cost airline’s routes and pricing point plans. Commenting on why Oman Air didn’t launch a low-cost airline, Gregorowitsch said the airline launching a low-cost airline would be a diversion from its own brand position of being a full service airline and openly questioned if a lower cost base could be obtained, based on the existing labour laws in Oman and the lack of economic scale within a limited market. During the announcement of the licence being awarded to the new low-cost airline, Khalid bin Hilal Al Yahmadi, CEO of Asas, had said that Asas’s aim would be to become one of the main development and investment arms for the government and pension funds in the country. The low-cost airline’s CEO said that as the national budget airline, it would provide access to economical and efficient means of transport and further advance the aviation sector in the Sultanate of Oman. >A6

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High student dropout Enforcement of a cause for concern ban on smoking

Science, tech pact to boost US-Oman ties

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The US Embassy in Muscat reaffirmed that the pact between the United States and Oman on cooperation in the field of science and technology was a significant step forward. The pact would lead to expansion of cooperation in the field of science and technology for peaceful purposes, said the US ambassador. >A6

Thousands of students are dropping out from higher education every year in Oman and the trend will have a negative impact on the government’s efforts to empower the private sector with an educated workforce. An average of 7,000 students drop out from the degree courses a year. The high dropout number is putting a financial pressure. >A2

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A section of the public has called through social media that the recent government decision on issues, such as a ban on smoking in enclosed areas and selling fish outside markets, should be enforced strictly. The Ministry of Agriculture and Fisheries had banned vendors from selling fish outside the market premises earlier this year. >A5

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